Analyzing VCI Global (NASDAQ:VCIG) and BGSF (NYSE:BGSF)

BGSF (NYSE:BGSF) and VCI Global (NASDAQ:VCIG) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Risk and Volatility

BGSF has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, VCI Global has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

37.2% of BGSF shares are owned by institutional investors. Comparatively, 0.2% of VCI Global shares are owned by institutional investors. 8.0% of BGSF shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for BGSF and VCI Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	1	1	2.50
VCI Global	1	0	0	0	1.00

BGSF currently has a consensus price target of $9.00, indicating a potential upside of 56.93%. Given BGSF’s stronger consensus rating and higher possible upside, equities analysts clearly believe BGSF is more favorable than VCI Global.

Profitability

This table compares BGSF and VCI Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-6.32%	-13.16%	-7.20%
VCI Global	N/A	N/A	N/A

Earnings & Valuation

This table compares BGSF and VCI Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$272.50 million	0.24	-$3.34 million	($1.03)	-5.57
VCI Global	$27.83 million	0.11	$7.87 million	N/A	N/A

VCI Global has lower revenue, but higher earnings than BGSF.

Summary

BGSF beats VCI Global on 8 of the 13 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

About VCI Global

VCI Global Limited, together with its subsidiaries, provides business and technology consulting services in Malaysia. The company offers business strategy consultancy services, including listing solutions, investors relations, and boardroom strategies consultancy. It also provides technology consultancy services and solutions, such as digital development, fintech solution, and software solutions. In addition, the company engages in corporate and business advisory services in corporate finance, corporate structuring and restructuring, equity investment, and merger and acquisition; listings on recognized stock exchanges; fintech advisory; technology development; and computer software programming. Further, it is involved in provision of artificial intelligence; image processing; communication; networking and process control software services; money lending services; education and training services; real estate management consultancy services; and leasing and operational management of resort properties. The company serves its products to small-medium enterprises and government-linked agencies, as well as to publicly traded conglomerates across various industries. VCI Global Limited was founded in 2013 and is headquartered in Kuala Lumpur, Malaysia.